Rs 14,263.4 crore order book: Rakesh Jhunjhunwala’s portfolio company enters non-binding equity partnership of USD 100 million with an Investor Consortium

The stock gave multibagger returns of 110 per cent in just 1 year whereas the BSE Small-Cap Index is up by 12 per cent.

Va Tech Wabag Ltd has announced a non-binding term sheet for a new "Municipal Platform" aimed at developing capital projects within the municipal water sector. This platform will involve an equity investment of up to USD 100 million over 3-5 years, made by an investor consortium that includes Norfund, the Norwegian Government's investment fund for sustainable development, and two other international investors.

WABAG will serve as the Technical Partner for this platform, providing Engineering, Procurement, and Construction (EPC) and Operations and Maintenance (O&M) services. Aligning with its asset-light strategy, WABAG will also make a minority investment in the platform. The primary focus of the platform is to address the increasing demand for advanced water treatment technologies and infrastructure, leveraging the combined expertise of WABAG and its investor partners to target key opportunities in the municipal sector.

This collaboration signifies WABAG's commitment to strategic financial partnerships and its dedication to the water sector. By establishing this platform, WABAG aims to accelerate the delivery of transformative projects in key regions, contributing to sustainable water management and economic development. Further updates regarding the progression towards definitive agreements will be provided as they become available.

About the Company

VA Tech Wabag Limited is a leading global water technology company with over a century of experience, providing innovative and sustainable solutions for municipal and industrial clients worldwide. As a Pure-Play Indian multinational, WABAG offers end-to-end water solutions, from design and engineering to long-term operations. With a global presence, a strong focus on R&D, and a commitment to sustainability, WABAG is shaping a future where water challenges are transformed into opportunities for a better world.

A renowned investor, Rekha Jhunjhunwala (wife of Late Rakesh Jhunjhunwala), held an 8.04 per cent stake in the company. The company has a market cap of over Rs 9,000 crore while the company has an order book of Rs 14,263.4 crore. The shares of the company have a PE of 30x while the industry PE is 29x. The stock gave multibagger returns of 110 per cent in just 1 year whereas the BSE Small-Cap Index is up by 12 per cent. Investors should keep an eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice.